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A Guide to Mortgages and Home Loans in Dubai for Foreigners



Dubai is paradise for all the people who want to live a modern and luxurious lifestyle. It is a well-developed state. It is not only the place where professionals prefer moving for a career boost. In fact, it is a great destination for families as well with a wide range of activities, which interests people of every age. If you plan on staying in Dubai for longer, you will definitely be interested in buying a home to suit all your needs individually. The good news here is that even foreigners can do that here and you can check the mortgage process in Dubai.

The providers of mortgage are very well aware of the deals required for expats and non-residents as well, which include the mortgage applications. Whether it is a simple investment, or you are looking for a new home for your family.

No matter what the reason behind buying a property in Dubai is, you need to know about the available mortgages and the required steps as well. This article will be handy for you regarding the offers by banks for mortgages and home loans to those who are not the residents of Dubai. The paper work, the legal documents needs, it has everything in black and white.

What kind of mortgages are available in Dubai?

Dubai Mortgage Process

Dubai Mortgage Process

The market is very developed in Dubai. There are tons of different providers for mortgage, from brands that are known globally to local institutes as well. The choice range makes it evident that you will have to do your research before anything. You will need to understand how most of the programs work, making a decision that best suits your needs.

If you are an expat, you can apply for a home in Dubai for residential proposes or as means of an investment. However, the amount for the deposit changes according to your needs and requirements. Usually if you are looking forward towards getting a property for investment purposes, you will see a greater risk. Therefore, the asking price by the bank will be higher in the form of an initial deposit. Expats who buy property for the purpose of an investment are told to pay at least forty percent of the price right away and it goes up to fifty percent if it is off plan. However, if you need a place to live in you will more likely be told to pay twenty-five percent up front.

Moreover, it is necessary that you know how much mortgage can be offered to you legally. As an expat purchaser, you will have to repay the whole amount, including both the interest and the principal. It can’t be more than the total that you expect to earn in an entire year.

The first and foremost thing that you need to decide is whether you want a fixed rate or a rate that is variable. If the rate of the mortgage is fixed, the rate offered always remains the same during the agreement. This region usually involves bout five years, after that the mortgage will revert to a rate that has been set by your bank. This rate isn’t always the best available deal. So, it is better that you understand what the print is and switch to a deal that is better, and the available offer has a fixed term.

Should you go to a banker or a broker?

You can opt for a loan directly through the bank or the originator of the loan, or you can also make a broker help you out with the loan.

One of the great resources available for mortgage in Dubai is Soqaimai, which is a comparison site that helps you in searching for a mortgage suiting your needs in the best possible way. An expat and a buyer are your potential buyers. Then, you can directly apply for the loan. However, in some of the cases where you are not sure about the mortgage eligibility, it is a good idea to take an advice from an expert or a mortgage broker who is qualified. This is very important for those people who are not familiar with the market of mortgage in Dubai and with the options and the regulations.

What are the legal requirements?

Since there has been a change in the local law after 2002, whether a foreigner, a resident or not, everyone can legally buy a property in Dubai and can also apply for the mortgage. This has fuels up a big rise when it comes to expats purchasing a home in Dubai.